Adjustment of the lump sums for non-cash withdrawals in 2021

Due to the extended application of the reduced VAT rate in the catering industry, the Federal Ministry of Finance has adjusted the flat rates for non-cash withdrawals in the second half of 2021.

For free transfers of value (own consumption) of food and beverages, the Federal Ministry of Finance annually publishes a list of flat rates for certain industries, which businesses can use to record withdrawals of goods by owners or staff on a monthly flat rate basis and thus avoid recording a large number of individual withdrawals. Since the reduced sales tax rate has applied to restaurant and catering services since July 1, 2020, the Ministry had already amended the flat rates for the second half of 2020 accordingly. The ministry had also announced two different half-year values for 2021 at the beginning of the year, because the change in the sales tax rate was originally scheduled to expire on June 30, 2021.

Meanwhile, the Third Corona Tax Relief Act extended the change in the sales tax rate in the restaurant industry until December 31, 2022. Therefore, the Ministry has updated the flat rates accordingly. Now, the same flat rates apply in the second half of the year as in the first half. However, this only results in changes for businesses in sectors that typically also offer restaurant and catering services, i.e., in addition to restaurants, bakeries, butchers, cafés and confectioners. The lump sum for the second half of the year has also been adjusted for the retail trade in food and beverages.